Samsung to acquire Sony stake in LCD joint ventureDecember 26th, 2011 - 7:38 pm ICT by IANS
New Delhi, Dec 26 (IANS) South Korean Samsung Electronics will buy Japanese Sony Corporation’s stake in their joint liquid crystal display (LCD) venture for 1.08 trillion won ($939 million).
The two companies have signed an agreement to this effect that would make the venture producing LCD panels used in televisions a wholly owned subsidiary of Samsung, the world’s biggest television maker.
“Under the agreement, Samsung will acquire all of Sony’s shares of S-LCD Corporation (’S-LCD’), the two companies’ LCD panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung,” the companies said in a joint statement Monday.
“In consideration for the share transfer, cash consideration of approximately KRW 1.08 trillion will be paid to Sony by Samsung,” added the statement.
The share transfer and payment are targeted to close by the end of January 2012 depending on regulatory approvals.
For Sony, the transaction will enable it to monetize its shares in S-LCD. It will help the consumer-electronics exporter secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility.
Both companies, however, said they would cooperate in engineering efforts focused on LCD panel technology.
- Sony to acquire Ericsson's stake in joint venture for $1.47 bn - Oct 27, 2011
- Sony to phase out feature phones by September - May 23, 2012
- Samsung Electronics' operating profit grows 13 percent in Q3 - Oct 28, 2011
- Samsung urged to invest in photo-voltaic cell facility in Tamil Nadu - Nov 27, 2010
- Samsung to make India production hub for consumer electronics - Nov 26, 2010
- Seagate to acquire Samsung's hard drive operations for $1.37 billion - Apr 19, 2011
- Carborundum Universal turns acquisitive in South Africa - Jun 19, 2012
- Hero Group arranges funds to acquire Hero Honda stakes - Mar 08, 2011
- Samsung India posts $3.5 billion turnover in 2010 - Jan 20, 2011
- Brazil's Embraer to begin building drones - Sep 09, 2011
- GMR completes Singapore arm stake sale to PETRONAS - Dec 29, 2011
- Samsung triples India handset output; invests $70 mn - Sep 15, 2011
- Samsung unveils high definition 3D TVs - Aug 04, 2010
- LG is leader in Mexico's 3D TV market - Feb 09, 2012
- Kanoria Chemicals to acquire Switzerland-based firm - Apr 20, 2012
Tags: cash consideration, consumer electronics, display lcd, joint venture, lcd panels, liquid crystal display, New Delhi, regulatory approvals, samsung, samsung electronics, share transfer, sony, sony corporation, south korean, stake, subsidiary, television, televisions, trillion